Momentum Group delivered record results for the year ended 30 June 2026, with normalised headline earnings (NHE) increasing by 13% to R7.06 billion and operating profit rising by 9% to R5,97 billion.
Jeanette Marais, Momentum Group CEO, said she is proud that earnings exceeded the R7 billion Impact strategy ambition one year earlier than originally planned. “It’s also very positive that we’ve seen stronger operational performance across most business units, while market impacts played less of a role in the current year’s profitability. This indicates that the actual quality of earnings improved. It’s worth noting that not only is every single business profitable, but also that five of our businesses each delivered earnings of more than R1 billion for the year.”
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Two of these five businesses, Momentum Retail and Momentum Corporate, had been delivering R1 billion per year over the last years. The three businesses that achieved the R1 billion target earlier than planned, are:
- Metropolitan Life, which effectively executed a turn-around plan focused on improving product commerciality, digital transformation, cost reduction as well as improved productivity and better quality of business in its sales channel.
- Momentum Investments brought its broad portfolio of businesses together behind a focused strategy, invested in technology, enhanced collaboration and vertical integration with the Group’s sales channels and improved processes, operational capabilities and client experience.
- Guardrisk, which expanded its underwriting capability, pursued bolt-on acquisitions, diversified its earnings across industries and geographies and invested in technology and capabilities required for growth.
Marais added: “Another noteworthy milestone is that our strategic partnership in India contributed positively to earnings for the first time, improving this segments’ earnings from a R67 million loss in the previous year to a R22 million profit this year. We foresee exponential growth in this health insurance business in the coming years.”
Risto Ketola, Group Finance Director, shared that the strong operational performance across business units drove a return on equity of 21.7%. “The Group’s new business sales increased by 18% to R93.8 billion, with strong contributions across most units: Momentum Africa grew sales by 45% to R5.2 billion, Momentum Corporate by 38% to R16.2 billion, Momentum Investments by 16% to R57.4 billion, and Momentum Retail by 8% to R9.4 billion, while Metropolitan Life reported a 14% decrease to R5.6 billion.”
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Value of new business (VNB) increased by 5% to R491 million. Profitability improved strongly in Momentum Retail, where VNB more than doubled from R45 million to R98 million, and Metropolitan Life, which turned around from -R13 million to +R60 million. These gains, alongside reduced new business strain in Momentum Corporate, were moderated by Momentum Investments declining from R509 million to R357 million due to a market shift towards lower-margin living annuities, resulting in an overall group VNB margin of 0.5%.
NHE per share increased by 18% from 451 cents to 530 cents, reflecting the positive impact from the recent share buyback programme. Headline earnings per share rose 18% to 528.7 cents and earnings per share improved 16% to 516.2 cents. Embedded value per share increased to R50.60, up from R42.51, with a return on embedded value per share of 24% for the year.
“The Group declared a final dividend of 120 cents per share, resulting in a full-year dividend of 230 cents, up 31% on the prior year. This represents a 43% payout ratio, within our 40% to 60% target range,” said Ketola. “Supported by our robust capital position, we completed the planned R1 billion share buyback at an average 28% discount to embedded value, creating a R388 million increase in value for shareholders.”
Future outlook
Marais said she is encouraged by the Group’s earnings despite global market volatility and constrained local consumer affordability.
“Households are still absorbing high living costs, which impacts their financial decisions. Sustaining our trajectory means sharpening our focus on VNB and growing sales volumes and market share in profitable products. Our Impact strategy strongly anchors our focus and execution, combining the best of technology with trusted human advice and a deep understanding of our clients’ needs. Ultimately, we never lose sight of our purpose: to build and protect our clients’ financial dreams,” concluded Marais.
Having exceeded its financial ambitions a year early, the Group is well advanced in its next strategic planning cycle and will share its strategy up to F2030 within the next twelve months.